According to an analysis of the most recent PlayStation 3 Software Development Kit (SDK) by Inner Bits, version 1.80 now provides developers with a method of streaming music off the user's hard drive. While the utility costs 12MB to implement, it's assumed that the cost will decrease in upcoming SDK releases. And while that uses a decent bit of precious memory, custom soundtrack support is the number one most requested feature for the PS3 and developers are sure to take advantage of it.
Additionally, this update also drastically reduces the overall memory cost of the PS3's operating system. System memory usage was only dropped to 48MB from 52MB but the video memory usage dropped from 32MB to 24MB. The cost of other features like the Friends List also has been reduced across almost the entire board, making them enticing developers.
Also added was a screenshot utility at a measly 3MB and the ability to use the PSP as an additional monitor for a reasonable 8MB. Amazing additions in all and it will be exciting to see what developers do with all these new possibilities. But mainly -- yay custom soundtracks!